All Michigan car accidents are scary events. However, Michigan car wrecks involving a fatality are tragic and life-changing. Besides claiming pain and suffering compensation under the Michigan Wrongful Death Act, certain individuals can also claim benefits under the Michigan No-Fault Law. These benefits are called Michigan survivor’s benefits.
What Are Survivor’s Benefits?
Under MCL 500.3108, benefits are divided into two main categories: (1) contributions of tangible things of economic value and (2) replacement services.
But what does “contributions of tangible things of economic value” mean? In its most basic terms, it refers to the wages lost due to the decedent’s death. Under the law, survivor’s loss benefits include the wages after taxes the decedent earned during the car accident. If the person worked at General Motors or Costco during the accident, a dependent is entitled to the decedent’s wages subtracting the taxes the decedent would have paid. This is available for three years from the date of the car accident.
However, contributions of tangible things of economic value are more than wage loss benefits. Under the law, they also include the value of lost fringe benefits. Fringe benefits can include a pension, profit-sharing plans, child support, and even certain types of loans.
As a result, it is important to evaluate the total income (not just wages and salary) that a decedent contributed at the time of their death.
Who Can Get Survivor’s Benefits?
To be able to obtain a claim for Michigan survivor’s loss benefits due to the death of a loved one following a motor vehicle crash, the person who died in the crash had to have dependents at the time of death.
Who Qualifies as a Dependent for Michigan Survivor’s Loss benefits?
According to MCL 500.3110, a dependent is any one of the following:
- A wife is dependent on a husband with whom she lives at the time of his death;
- A husband is dependent on a wife with whom he lives with at the time of her death;
- A child under the age of 18;
- A child over the age of 18 but physically or mentally incapacitated from earning is dependent on the parent with he lives or from with whom he receives support regularly at the time of the death of the parent.
In all the above situations, the family of the deceased can claim survivor’s loss benefits. In all other cases, questions of dependency and the extent of dependency shall be determined by the facts as they exist at the time of death.
What are Examples of Dependents?
If a person dies in a car accident but is not married and doesn’t have any children, the family of the decedent cannot claim Michigan survivor’s loss benefits under the no-fault law. On the other hand, a spouse with no children is eligible. In addition, an unmarried person who dies in a car accident but has a child under the age of 18 is also eligible.
Is an Ex-Spouse a Dependent?
Usually no. The dependency of a surviving spouse is terminated upon death or remarriage. In all other cases, dependency must be determined on a case-by-case basis based on the facts as they exist at the time of death.
Is an Adult Child a Dependent?
Situations involving children over the age of 18 are more complicated. Typically, children over 18 are not considered dependents. However, suppose proof is submitted that shows the child was financially dependent upon the deceased parent for food, shelter, and other things. In that case, a claim can be pursued for survivor’s loss benefits. However, it will be up to the court to decide if the criteria for dependency have been met.
What Are Replacement Services?
In addition to contributions of tangible things of economic value, the deceased’s family can also claim replacement services. Replacement services typically include the household chores and other essential tasks the deceased person used to do and must be replaced due to a car accident-related death. The replacement services paid by an insurance carrier cannot exceed $20.00 per day. This benefit is available for 3 years from the date of the motor vehicle accident.
Which Car Insurance Company Pays Survivor’s Loss Benefits?
This is an important question. An injured person must file a first-party claim against the correct auto insurance carrier. Failing to do so can result in the loss of all no-fault benefits.
There is an order of priority to determine which insurance carrier is responsible. After the significant 2019 reforms, the order of priority changed drastically. The current order is the following:
- Your own auto insurance – if you have car insurance, your car insurance company is responsible for paying PIP benefits. This is true even if your vehicle or vehicles had nothing to do with the accident. If you are a named insured on the policy, your auto insurance must pay all first-party benefits.
- The auto insurance company of a resident relative – this includes a spouse, sibling, child, parent, and possibly other relatives. Again, it doesn’t matter if their car had nothing to do with the crash. That insurance carrier must step up and pay all first-party benefits.
- The Michigan Assigned Claims Plan (MACP) – If an injured person does not have auto insurance and does not live with a relative who has car insurance, then they MUST turn to the Michigan Assigned Claims Plan or the MACP. The Michigan Automobile Insurance Placement Facility runs the MACP.
Is there an Annual Maximum Payment for Survivor’s Loss Benefits?
Yes. The amount of survivor’s loss benefits payable to dependents and the Estate is subject to a monthly maximum. That monthly maximum is adjusted each year.
For motor vehicle accidents between October 1, 2024, and September 30, 2025, the maximum monthly survivor’s loss payment is $7,014 per single 30-day period. This is an increase from $6,811 for the prior year.
Can the Car Insurance Carrier Apply Set-Offs to Survivor’s Loss Payments?
Car insurance carriers can utilize certain set-offs to pay survivor’s loss benefits. For example, if a child is receiving monthly Social Security death benefits following the death of a parent from a car accident, the carrier can offset the monthly death benefit from the survivor’s loss benefits it is obligated to pay. Other set-offs can include military benefits and worker’s compensation checks.
Need Help Getting Wrongful Death Payments Following a Car Accident? Call the Lee Steinberg Law Firm to Get Results
The legal experts at the Lee Steinberg Law Firm have been handling first-party claims for over 50 years. Our team of tough and aggressive Michigan car accident lawyers knows what it takes to get you the benefits you paid for and deserve.
Call us at 1-800-LEE-FREE (1-866-696-9146) for a free consultation. We can answer your questions. Our office will go after the insurance company for your family and obtain survivors’ loss benefits. There is never a fee until we win your case.